| Nevada                          |   | 88-0409151          |
|---------------------------------|--------|---------------------|
| (State or other jurisdiction of |   | (IRS Employer       |
| incorporation or organization)  |   | Identification No.) |

----

----

|                                                           |   | Page   |
|----------------------------------------------------------------|--------|--------|
|                                                           |   |   |
| Consolidated Financial Statements                              |   |   |
|                                                           |   |   |
| Report of Independent Registered Public Accounting Firm        |   | 1      |
|                                                           |   |   |
| Consolidated Balance Sheets                                    |   | 2      |
|                                                           |   |   |
| Consolidated Statements of Operations and Comprehensive Income |   | 3      |
|                                                           |   |   |
| Consolidated Statements of Cash Flows                          |   | 4      |
|                                                           |   |   |
| Notes to Consolidated Financial Statements                     |   | 5      |

----

----

|                                                                                                                                           |   | March 31, |       |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                                                                                                                                           |   | 2009           |       |   | 2008              |   |
|                                                                                                                                           |   | (Unaudited)    |       |   |              |   |
|                                                                                                                                           |   | (Restated)     |       |   | (Restated)        |   |
| Assets                                                                                                                                         |   |           |       |   |              |   |
| Current assets                                                                                                                                 |   |           |       |   |              |   |
| Cash and cash equivalents                                                                                                                      |   | $              | 40,679     |   |              | $      | 8,579 |   |
| Accounts receivable                                                                                                                            |   |           | 23,336     |   |              |   | 18,172 |   |
| Prepayments, deposits and other receivables                                                                                                    |   |           | 52,673     |   |              |   | 41,283 |   |
| Inventory                                                                                                                                      |   |           | 370,804    |   |              |   | 393,178 |   |
| Receivable for disposal of Evergreen                                                                                                           |   |           | 2,629,426  |   |              |   | - |   |
| Total current assets                                                                                                                           |   |           | 3,116,918  |   |              |   | 461,212 |   |
|                                                                                                                                           |   |           |       |   |              |   |   |   |
| Property, plant and equipment, net                                                                                                             |   |           | 866,335    |   |              |   | 874,576 |   |
| Construction in progress                                                                                                                       |   |           | 8,258      |   |              |   | 8,248 |   |
| Intangible assets                                                                                                                              |   |           | 135,095    |   |              |   | 135,649 |   |
| Goodwill                                                                                                                                       |   |           | 13,115,254 |   |              |   | 13,106,263 |   |
| Assets of discontinued division                                                                                                                |   |           | -          |   |              |   | 10,158,905 |   |
| Total assets                                                                                                                                   |   | $              | 17,241,860 |   |              | $      | 24,744,853 |   |
|                                                                                                                                           |   |           |       |   |              |   |   |   |
| Liabilities                                                                                                                                    |   |           |       |   |              |   |   |   |
| Current liabilities                                                                                                                            |   |           |       |   |              |   |   |   |
| Warrant liability                                                                                                                              |   | $              | 36,610     |   |              | $      | 36,610 |   |
| Accounts payable                                                                                                                               |   |           | 193,510    |   |              |   | 187,033 |   |
| Accrued expenses                                                                                                                               |   |           | 2,129,852  |   |              |   | 1,822,041 |   |
| Due to directors                                                                                                                               |   |           | 168,403    |   |              |   | 251,554 |   |
| Due to related companies                                                                                                                       |   |           | 3,189,932  |   |              |   | 3,169,152 |   |
| Due to affiliated companies                                                                                                                    |   |           | 1,679,979  |   |              |   | 1,758,281 |   |
| Income tax payable                                                                                                                             |   |           | 172        |   |              |   | 162 |   |
| Total current liabilities                                                                                                                      |   |           | 7,398,458  |   |              |   | 7,224,833 |   |
|                                                                                                                                           |   |           |       |   |              |   |   |   |
| Long-term liabilities:                                                                                                                         |   |           |       |   |              |   |   |   |
| Other payables for acquisition of a subsidiary                                                                                                 |   |           | 5,950,000  |   |              |   | 5,950,000 |   |
| Total long-term liabilities                                                                                                                    |   |           | 5,950,000  |   |              |   | 5,950,000 |   |
|                                                                                                                                           |   |           |       |   |              |   |   |   |
| Liabilities of discontinued division                                                                                                           |   |           | -          |   |              |   | 7,386,647 |   |
|                                                                                                                                           |   |           |       |   |              |   |   |   |
| Total liabilities                                                                                                                              |   |           | 13,348,458 |   |              |   | 20,561,480 |   |
|                                                                                                                                           |   |           |       |   |              |   |   |   |
| Equity                                                                                                                                         |   |           |       |   |              |   |   |   |
| Stockholders' equity                                                                                                                           |   |           |       |   |              |   |   |   |
| Preferred stock, $0.001 par value, 50,000,000 shares authorized, no shares issued and outstanding                                              |   |           | -          |   |              |   | - |   |
| Common stock, $0.001 par value, 200,000,000 shares authorized;139,383,450 shares issued and outstanding at June 30, 2009 and December 31, 2008 |   |           | 139,383    |   |              |   | 139,383 |   |
| Additional paid-in capital                                                                                                                     |   |           | 6,131,532  |   |              |   | 6,131,532 |   |
| Retained earnings (accumulated deficit)                                                                                                        |   |           | (3,377,976 | )      |              |   | (3,252,804 | ) |
| Accumulated other comprehensive income                                                                                                         |   |           | 1,253,758  |   |              |   | 1,404,509 |   |
| Total stockholders' equity                                                                                                                     |   |           | 4,146,697  |   |              |   | 4,422,620 |   |
|                                                                                                                                           |   |           |       |   |              |   |   |   |
| Noncontrolling interest                                                                                                                        |   |           | (253,295   | )      |              |   | (239,247 | ) |
|                                                                                                                                           |   |           |       |   |              |   |   |   |
| Total equity                                                                                                                                   |   |           | 3,893,402  |   |              |   | 4,183,373 |   |
|                                                                                                                                           |   |           |       |   |              |   |   |   |
| Total liabilities and equity                                                                                                                   |   | $              | 17,241,860 |   |              | $      | 24,744,853 |   |

----

|                                                                   |   | Three Months Ended March 31, |        |
|------------------------------------------------------------------------|--------|--------------------------------------------------|-------------|
|                                                                   |   | 2009                                             |        |   | 2008 |   |
|                                                                   |   | (Restated)                                       |        |   | (Restated) |   |
| Sale                                                                   |   |                                             |        |   |   |   |
| Revenue from sales of bottled water                                    |   | $                                                | 26,064      |   |   | $ | 47,723 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Total sales                                                            |   |                                             | 26,064      |   |   |   | 47,723 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Cost of sales                                                          |   |                                             |        |   |   |   |   |   |
| Cost of revenue from sale of bottled water                             |   |                                             | 2,654       |   |   |   | 8,966 |   |
| Depreciation and amortization                                          |   |                                             | 10,413      |   |   |   | 9,379 |   |
| Sales tax                                                              |   |                                             | 303         |   |   |   | 19 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Total cost of sales                                                    |   |                                             | 13,370      |   |   |   | 18,364 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Gross profit                                                           |   |                                             | 12,694      |   |   |   | 29,359 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Operating expenses                                                     |   |                                             |        |   |   |   |   |   |
| Selling and distribution expenses                                      |   |                                             | 7,297       |   |   |   | 205,235 |   |
| General and administrative expenses                                    |   |                                             | 129,685     |   |   |   | 113,498 |   |
| Total operating expenses                                               |   |                                             | 136,982     |   |   |   | 318,733 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Loss from operations                                                   |   |                                             | (124,288    | ) |   |   | (289,374 | ) |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Other income (expenses)                                                |   |                                             |        |   |   |   |   |   |
| Interest expenses                                                      |   |                                             | -           |   |   |   | (80 | ) |
| Other expense                                                          |   |                                             | (10,188     | ) |   |   | (613 | ) |
| Penalty for late effectiveness of registration statement               |   |                                             | -           |   |   |   | (22,688 | ) |
| Gain on financial instruments                                          |   |                                             | -           |   |   |   | 518,542 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Total other income (expenses)                                          |   |                                             | (10,188     | ) |   |   | 495,161 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Income (loss) from continuing operations                               |   |                                             | (134,476    | ) |   |   | 205,787 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Provision for income tax                                               |   |                                             | (170        | ) |   |   | (61 | ) |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Loss from continuing operations                                        |   |                                             | (134,646    | ) |   |   | 205,726 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Discontinued operations:                                               |   |                                             |        |   |   |   |   |   |
| Income from discontinued operations of Evergreen Asset Group           |   |                                             | -           |   |   |   | 94,518 |   |
| Income tax                                                             |   |                                             | -           |   |   |   | (6,626 | ) |
| Income from discontinued operations                                    |   |                                             | -           |   |   |   | 87,892 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Net income (loss)                                                      |   | $                                                | (134,646    | ) |   | $ | 293,618 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Less: net income (loss) attributable to noncontrolling interest        |   |                                             | (9,474      | ) |   |   | - |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Net income (loss) attributable to CHWG                                 |   | $                                                | (125,172    | ) |   | $ | 293,618 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Other comprehensive income (loss)                                      |   |                                             |        |   |   |   |   |   |
| Foreign currency translation adjustment                                |   |                                             | (150,751    | ) |   |   | 307,189 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Comprehensive income (loss)                                            |   | $                                                | (275,923    | ) |   | $ | 600,807 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Basic earnings (loss) per share                                        |   | $                                                | (0.00       | ) |   | $ | 0.00 |   |
| Diluted earnings (loss) per share                                      |   | $                                                | (0.00       | ) |   | $ | 0.00 |   |
|                                                                   |   |                                             |        |   |   |   |   |   |
| Weighted average number of common shares outstanding Basic and Diluted |   |                                             | 139,383,450 |   |   |   | 139,383,450 |   |

----

|                                                                                               |   | Three Months Ended March 31, |       |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|------------|
|                                                                                          |   | 2009                                             |       |   | 2008 |   |
|                                                                                          |   | (Restated)                                       |       |   | (Restated) |   |
| Cash flows from operating activities:                                                              |   |                                             |       |   |   |   |
| Net income (loss)                                                                                  |   | $                                                | (134,646   | ) |   | $ | 293,618 |   |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |   |                                             |       |   |   |   |   |   |
| Depreciation and amortization                                                                      |   |                                             | 10,413     |   |   |   | 9,379 |   |
| Gain on fair value of derivative instruments                                                       |   |                                             |       |   |   |   | (518,542 | ) |
| Changes in operating assets and liabilities:                                                       |   |                                             |       |   |   |   |   |   |
| Accounts receivable                                                                                |   |                                             | (5,141     | ) |   |   | (20,522 | ) |
| Prepayments, deposits and other receivables                                                        |   |                                             | (11,337    | ) |   |   | 6,172,240 |   |
| Inventory                                                                                          |   |                                             | 22,865     |   |   |   | (514,210 | ) |
| Receivable for disposal of Evergreen                                                               |   |                                             | (2,629,426 | ) |   |   | - |   |
| Current assets of discontinued division                                                            |   |                                             | -          |   |   |   | 4,519,371 |   |
| Accounts payable                                                                                   |   |                                             | 6,241      |   |   |   | 186,856 |   |
| Accrued expenses                                                                                   |   |                                             | 307,154    |   |   |   | 442,115 |   |
| Due to directors                                                                                   |   |                                             | (83,455    | ) |   |   | 27,243 |   |
| Current liabilities of discontinued division                                                       |   |                                             | -          |   |   |   | (11,028,127 | ) |
|                                                                                               |   |                                             |       |   |   |   |   |   |
| Total adjustments                                                                                  |   |                                             | (2,382,686 | ) |   |   | (724,197 | ) |
|                                                                                               |   |                                             |       |   |   |   |   |   |
| Net cash used in operating activities                                                              |   |                                             | (2,517,332 | ) |   |   | (430,579 | ) |
|                                                                                               |   |                                             |       |   |   |   |   |   |
| Cash flows from investing activities:                                                              |   |                                             |       |   |   |   |   |   |
| Due from related companies                                                                         |   |                                             | -          |   |   |   | 39,281 |   |
| Acquisition of property, plant and equipment                                                       |   |                                             | (349       | ) |   |   | (861,251 | ) |
| Non-current assets of discontinued division                                                        |   |                                             | -          |   |   |   | 3,207,465 |   |
| Acquisition of intangible assets                                                                   |   |                                             |       |   |   |   | (135,231 | ) |
| Acquisition of goodwill                                                                            |   |                                             |       |   |   |   | (6,985,056 | ) |
| Disposal of a subsidiary – Evergreen, net of cash                                            |   |                                             | 2,775,719  |   |   |   |   |   |
|                                                                                               |   |                                             |       |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                                |   |                                             | 2,775,370  |   |   |   | (4,734,792 | ) |
|                                                                                               |   |                                             |       |   |   |   |   |   |
| Cash flows from Financing activities:                                                              |   |                                             |       |   |   |   |   |   |
| Due to related companies                                                                           |   |                                             | 16,797     |   |   |   | 3,245,836 |   |
| Due to affiliated companies                                                                        |   |                                             | (80,500    | ) |   |   | 1,637,729 |   |
|                                                                                               |   |                                             |       |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                                |   |                                             | (63,703    | ) |   |   | 4,883,565 |   |
| Effect of foreign currency translation on cash and cash equivalents                                |   |                                             | (162,235   | ) |   |   | 307,191 |   |
|                                                                                               |   |                                             |       |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                          |   |                                             | 32,100     |   |   |   | 25,385 |   |
|                                                                                               |   |                                             |       |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                                     |   |                                             | 8,579      |   |   |   | 0 |   |
|                                                                                               |   |                                             |       |   |   |   |   |   |
| Cash and cash equivalents at end of year                                                           |   | $                                                | 40,679     |   |   | $ | 25,385 |   |
|                                                                                               |   |                                             |       |   |   |   |   |   |
| Supplemental schedule of non-cash activities                                                       |   |                                             |       |   |   |   |   |   |
| Outstanding obligation for acquisition of a subsidiary - Xinchen                                   |   | $                                                | -          |   |   | $ | 5,950,000 |   |

----

----

----

----

----

|   | (i) | The basic earnings per share are calculated using the net income and the weighted average number of shares outstanding during the year. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|                                                 |   | Three Months Ended March 31, |        |
|------------------------------------------------------|--------|--------------------------------------------------|-------------|
|                                                 |   | 2009                                             |        |   | 2008 |   |
|                                                 |   |                                             |        |   |   |   |
| Net income (loss) attributable to CHWG               |   | $                                                | (125,172    | ) |   | $ | 293,618 |   |
|                                                 |   |                                             |        |   |   |   |   |   |
| Weighted average number of common shares outstanding |   |                                             | 139,383,450 |   |   |   | 139,383,450 |   |
|                                                 |   |                                             |        |   |   |   |   |   |
| Basic earnings per share                             |   | $                                                | (0.00       | ) |   | $ | 0.00 |   |

|   | (ii) | The diluted earnings per share are calculated using the net income and the weighted average number of shares outstanding during the year together with incremental common shares issuable upon the exercise of all warrants issued. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                 |   | Three Months Ended March 31, |        |
|------------------------------------------------------|--------|--------------------------------------------------|-------------|
|                                                 |   | 2009                                             |        |   | 2008 |   |
|                                                 |   |                                             |        |   |   |   |
| Net income (loss) attributable to CHWG               |   | $                                                | (125,172    | ) |   | $ | 293,618 |   |
|                                                 |   |                                             |        |   |   |   |   |   |
| Weighted average number of common shares outstanding |   |                                             | 139,383,450 |   |   |   | 139,383,450 |   |
|                                                 |   |                                             |        |   |   |   |   |   |
| Diluted earnings per share                           |   | $                                                | (0.00       | ) |   | $ | 0.00 |   |

----

|               |   | March 31, |    |   | December 31, |   |
|--------------------|--------|----------------|---------|--------|-------------------|--------|
|               |   | 2009           |    |   | 2008              |   |
|               |   |           |    |   |              |   |
| Raw materials      |   | $              | 1,798   |   |              | $      | 1,796 |   |
| Packaging supplies |   |           | 199,969 |   |              |   | 198,958 |   |
| Finished goods     |   |           | 169,037 |   |              |   | 192,424 |   |
|               |   |           |    |   |              |   |   |   |
| Total              |   | $              | 370,804 |   |              | $      | 393,178 |   |

|                               |   | March 31, |    |   | December 31, |   |
|------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                               |   | 2009           |    |   | 2008              |   |
|                               |   |           |    |   |              |   |
| Office equipment                   |   | $              | 11,783  |   |              | $      | 16,858 |   |
| Furniture and fixtures             |   |           | 5,445   |   |              |   | - |   |
| Motor vehicles                     |   |           | 59,436  |   |              |   | 59,362 |   |
| Building and structure             |   |           | 178,914 |   |              |   | 170,785 |   |
| Bottled water production equipment |   |           | 657,413 |   |              |   | 664,492 |   |
|                               |   |           |    |   |              |   |   |   |
| Total                              |   |           | 912,991 |   |              |   | 911,497 |   |
|                               |   |           |    |   |              |   |   |   |
| Less : Accumulated depreciation    |   |           | (46,656 | )      |              |   | (36,921 | ) |
|                               |   |           |    |   |              |   |   |   |
| Property, plant and equipment, net |   | $              | 866,335 |   |              | $      | 874,576 |   |

|                           |   | March 31, |    |   | December 31, |   |
|--------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                           |   | 2009           |    |   | 2008              |   |
|                           |   |           |    |   |              |   |
| Rights to use land             |   | $              | 145,003 |   |              | $      | 144,821 |   |
| Less: accumulated amortization |   |           | 9,908   |   |              |   | 9,172 |   |
|                           |   |           |    |   |              |   |   |   |
| Total                          |   | $              | 135,095 |   |              | $      | 135,649 |   |

----

|                                                        |   | March 31, |   |   | December 31, |   |
|-------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                        |   | 2009           |   |   | 2008              |   |
|                                                        |   |           |   |   |              |   |
| Warrants issued in April 2005, at fair value                |   | $              | 4,410  |   |              | $      | 4,410 |   |
| Warrants issued in September 2005, at fair value            |   |           | -      |   |              |   | - |   |
| Shares issued in September 2005, accounted for as liability |   |           | 32,200 |   |              |   | 32,200 |   |
|                                                        |   |           |   |   |              |   |   |   |
| Total                                                       |   | $              | 36,610 |   |              | $      | 36,610 |   |

----

----

----

----

|                                                                                                     |   | As reported       |      |   | As reported       |   |       |           |   |
|----------------------------------------------------------------------------------------------------------|--------|------------------------|-----------|--------|------------------------|--------|------------|----------------|--------|
|                                                                                                     |   | originally             |      |   | currently              |   |       |           |   |
|                                                                                                     |   | at March 31, |      |   | at March 31, |   |       | Effect of |   |
|                                                                                                     |   | 2009                   |      |   | 2009                   |   |       | Change         |   |
| Assets                                                                                                   |   |                   |      |   |                   |   |       |           |   |
| Current assets:                                                                                          |   |                   |      |   |                   |   |       |           |   |
| Cash and cash equivalents                                                                                |   | $                      | 40,679    |   |                   | $      | 40,679     |           |   | $ | - |   |
| Accounts receivable                                                                                      |   |                   | 23,336    |   |                   |   | 23,336     |           |   |   | - |   |
| Prepayments, deposits and other receivables                                                              |   |                   | 52,673    |   |                   |   | 52,673     |           |   |   | - |   |
| Inventory                                                                                                |   |                   | 370,804   |   |                   |   | 370,804    |           |   |   | - |   |
| Loans to unrelated party                                                                                 |   |                   | 645,230   |   |                   |   |       |           |   |   | (645,230) |   |
| Receivable for dispoal of Evergreen                                                                      |   |                   | -         |   |                   |   | 2,629,426  |           |   |   | 2,629,426 |   |
| Total current assets                                                                                     |   |                   | 1,132,722 |   |                   |   | 3,116,918  |           |   |   | 1,984,196 |   |
|                                                                                                     |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Property, plant and equipment, net                                                                       |   |                   | 866,335   |   |                   |   | 866,335    |           |   |   | - |   |
| Construction in progress                                                                                 |   |                   | 8,258     |   |                   |   | 8,258      |           |   |   | - |   |
| Intangible assets                                                                                        |   |                   | 135,095   |   |                   |   | 135,095    |           |   |   | - |   |
| Goodwill                                                                                                 |   |                   | 7,165,254 |   |                   |   | 13,115,254 |           |   |   | 5,950,000 |   |
|                                                                                                     |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Total assets                                                                                             |   | $                      | 9,307,664 |   |                   | $      | 17,241,860 |           |   | $ | 7,934,196 |   |
|                                                                                                     |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Liabilities                                                                                              |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Current liabilities:                                                                                     |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Warrant liability                                                                                        |   | $                      | 36,610    |   |                   | $      | 36,610     |           |   |   | - |   |
| Accounts payable                                                                                         |   |                   | 193,510   |   |                   |   | 193,510    |           |   |   | - |   |
| Accrued expenses                                                                                         |   |                   | 1,825,635 |   |                   |   | 2,129,852  |           |   |   | 304,217 |   |
| Due to directors                                                                                         |   |                   | 168,403   |   |                   |   | 168,403    |           |   |   | - |   |
| Due to related companies                                                                                 |   |                   | 3,189,932 |   |                   |   | 3,189,932  |           |   |   | - |   |
| Due to affiliated companies                                                                              |   |                   |      |   |                   |   | 1,679,979  |           |   |   | 1,679,979 |   |
| Income tax payable                                                                                       |   |                   | 172       |   |                   |   | 172        |           |   |   | - |   |
| Total current liabilities                                                                                |   |                   | 5,414,262 |   |                   |   | 7,398,458  |           |   |   | 1,984,196 |   |
|                                                                                                     |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Long-term liabilities:                                                                                   |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Other payables for acquisition of a subsidiary                                                           |   |                   | -         |   |                   |   | 5,950,000  |           |   |   | 5,950,000 |   |
| Total long-term liabilities                                                                              |   |                   | -         |   |                   |   | 5,950,000  |           |   |   | 5,950,000 |   |
|                                                                                                     |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Total liabilities                                                                                        |   |                   | 5,414,262 |   |                   |   | 13,348,458 |           |   |   | 7,934,196 |   |
|                                                                                                     |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Equity                                                                                                   |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Stockholders' equity:                                                                                    |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Preferred stock, $0.001 par value, 50,000,000 authorized shares, no shares issued and outstanding        |   |                   | -         |   |                   |   | -          |           |   |   | - |   |
| Common stock, $0.001 par value, 200,000,000 shares authorized; 139,383,450 shares issued and outstanding |   |                   | 139,383   |   |                   |   | 139,383    |           |   |   | - |   |
| Additional paid-in capital                                                                               |   |                   | 2,584,188 |   |                   |   | 6,131,532  |           |   |   | 3,547,344 |   |
| Retained earnings                                                                                        |   |                   | 1,072,584 |   |                   |   | (3,377,976 | )              |   |   | (4,450,560 | ) |
| Accumulated other comprehensive income                                                                   |   |                   | 97,247    |   |                   |   | 1,253,758  |           |   |   | 1,156,511 |   |
| Total stockholders' equity                                                                               |   |                   | 3,893,402 |   |                   |   | 4,146,697  |           |   |   | 253,295 |   |
|                                                                                                     |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Noncontrolling interest                                                                                  |   |                   | -         |   |                   |   | (253,295)  |           |   |   | (253,295) |   |
|                                                                                                     |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Total equity                                                                                             |   |                   | 3,893,402 |   |                   |   | 3,893,402  |           |   |   | - |   |
|                                                                                                     |   |                   |      |   |                   |   |       |           |   |   |   |   |
| Total liabilities and equity                                                                             |   | $                      | 9,307,664 |   |                   | $      | 17,241,860 |           |   | $ | 7,934,196 |   |

----

|                                                                   |   | As reported           |        |   | As reported           |   |        |           |   |
|------------------------------------------------------------------------|--------|----------------------------|-------------|--------|----------------------------|--------|-------------|----------------|--------|
|                                                                   |   | originally for        |        |   | currently for         |   |        |           |   |
|                                                                   |   | the three months |        |   | the three months |   |        |           |   |
|                                                                   |   | ended March 31,  |        |   | ended March 31,  |   |        | Effect of |   |
|                                                                   |   | 2009                       |        |   | 2009                       |   |        | Change         |   |
| Sales                                                                  |   |                       |        |   |                       |   |        |           |   |
| Revenue from BOT wastewater treatment services                         |   | $                          | -           |   |                       | $      | -           |           |   | $ | - |   |
| Revenue from sales of bottled water                                    |   |                       | 26,064      |   |                       |   | 26,064      |           |   |   | - |   |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Total sales                                                            |   |                       | 26,064      |   |                       |   | 26,064      |           |   |   | - |   |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Cost of sales                                                          |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Cost of revenue for BOT wastewater treatment services                  |   |                       | -           |   |                       |   | -           |           |   |   | - |   |
| Cost of revenue from sale of bottled water                             |   |                       | 2,654       |   |                       |   | 2,654       |           |   |   | - |   |
| Depreciation and amortization                                          |   |                       | 10,413      |   |                       |   | 10,413      |           |   |   | - |   |
| Sales tax                                                              |   |                       | 303         |   |                       |   | 303         |           |   |   | - |   |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Total cost of sales                                                    |   |                       | 13,370      |   |                       |   | 13,370      |           |   |   | - |   |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Gross profit                                                           |   |                       | 12,694      |   |                       |   | 12,694      |           |   |   | - |   |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Operating expenses                                                     |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Selling and distribution expenses                                      |   |                       | (7,297      | )      |                       |   | (7,297      | )              |   |   | - |   |
| General and administrative expenses                                    |   |                       | (129,685    | )      |                       |   | (129,685    | )              |   |   | - |   |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Total operating expenses                                               |   |                       | (136,982    | )      |                       |   | (136,982    | )              |   |   | - |   |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Loss from operations                                                   |   |                       | (124,288    | )      |                       |   | (124,288    | )              |   |   | - |   |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Other income (expenses)                                                |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Other expense                                                          |   |                       | (10,188     | )      |                       |   | (10,188     | )              |   |   | - |   |
| Gain on disposal of a subsidiary – Evergreen                     |   |                       | 2,775,104   |   |                       |   | -           |           |   |   | (2,775,104 | ) |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Total other income (expenses)                                          |   |                       | 2,764,916   |   |                       |   | (10,188     | )              |   |   | (2,775,104 | ) |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Income (loss) from continuing operations                               |   |                       | 2,640,628   |   |                       |   | (134,476    | )              |   |   | (2,775,104 | ) |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Provision for income tax                                               |   |                       | (170        | )      |                       |   | (170        | )              |   |   | - |   |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Net income (loss)                                                      |   |                       | 2,640,458   |   |                       |   | (134,646    | )              |   |   | (2,775,104 | ) |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Less: net income attributable to noncontrolling interest               |   |                       | -           |   |                       |   | (9,474      | )              |   |   | (9,474 | ) |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Net income attributable to CHWG                                        |   |                       | 2,640,458   |   |                       |   | (125,172    | )              |   |   | (2,765,630 | ) |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Other comprehensive income (loss)                                      |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Foreign currency translation adjustment                                |   |                       | (1,188,751  | )      |                       |   | (150,751    | )              |   |   | 1,038,000 |   |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Comprehensive income (loss)                                            |   | $                          | 1,451,707   |   |                       | $      | (275,923    | )              |   | $ | (1,727,630 | ) |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Basic earnings per share                                               |   | $                          | 0.02        |   |                       | $      | (0.00       | )              |   | $ | (0.02 | ) |
| Diluted earnings per share                                             |   | $                          | 0.02        |   |                       | $      | (0.00       | )              |   | $ | (0.02 | ) |
|                                                                   |   |                       |        |   |                       |   |        |           |   |   |   |   |
| Weighted average number of common shares outstanding Basic and Diluted |   |                       | 139,383,450 |   |                       |   | 139,383,450 |           |   |   | - |   |

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|                                                                                         |   | As reported           |       |   | As reported           |   |       |           |   |
|----------------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|----------------------------|--------|------------|----------------|--------|
|                                                                                         |   | originally for        |       |   | currently for         |   |       |           |   |
|                                                                                         |   | the three months |       |   | the three months |   |       |           |   |
|                                                                                         |   | ended March 31,  |       |   | ended March 31,  |   |       | Effect of |   |
|                                                                                         |   | 2009                       |       |   | 2009                       |   |       | Change         |   |
| Cash flows from operating activities                                                         |   |                       |       |   |                       |   |       |           |   |
| Net income                                                                                   |   | $                          | 2,640,458  |   |                       | $      | (134,646   | )              |   | $ | (2,775,104 | ) |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities : |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Depreciation and amortization                                                                |   |                       | 10,413     |   |                       |   | 10,413     |           |   |   | - |   |
| Minority interest                                                                            |   |                       | -          |   |                       |   | -          |           |   |   | - |   |
|                                                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Changes in operating assets and liabilities :                                                |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Accounts receivable                                                                          |   |                       | (24,750    | )      |                       |   | (5,141     | )              |   |   | 19,609 |   |
| Prepayment, deposits and other receivables                                                   |   |                       | (48,549    | )      |                       |   | (11,337    | )              |   |   | 37,212 |   |
| Inventory                                                                                    |   |                       | 22,865     |   |                       |   | 22,865     |           |   |   | - |   |
| Receivable for disposal of Evergreen                                                         |   |                       |       |   |                       |   | (2,629,426 | )              |   |   | (2,629,426 | ) |
| Accounts payable                                                                             |   |                       | 6,241      |   |                       |   | 6,241      |           |   |   | - |   |
| Accruals and other liabilities                                                               |   |                       | 40,182     |   |                       |   | 307,154    |           |   |   | 266,972 |   |
| Due to directors                                                                             |   |                       |       |   |                       |   | (83,455    | )              |   |   | (83,455 | ) |
| Total adjustments                                                                            |   |                       | 6,402      |   |                       |   | (2,382,686 | )              |   |   | (2,389,088 | ) |
|                                                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Net cash provided by operating activities                                                    |   |                       | 2,646,860  |   |                       |   | (2,517,332 | )              |   |   | (5,164,192 | ) |
|                                                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Cash flows from investing activities                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Due from related companies                                                                   |   |                       | (502,911   | )      |                       |   | -          |           |   |   | 502,911 |   |
| Loans to unrelated party                                                                     |   |                       | (2,384,925 | )      |                       |   | -          |           |   |   | 2,384,925 |   |
| Disposal of interest in a subsidiary – Evergreen                                       |   |                       | 82,108     |   |                       |   | -          |           |   |   | (82,108 | ) |
| Acquisition of property, plant and equipment                                                 |   |                       | (349       | )      |                       |   | (349       | )              |   |   | - |   |
| Disposal of a subsidiary – Evergreen, net of cash                                      |   |                       | -          |   |                       |   | 2,775,719  |           |   |   | 2,775,719 |   |
|                                                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Net cash used in investing activities                                                        |   |                       | (2,806,077 | )      |                       |   | 2,775,370  |           |   |   | 5,581,447 |   |
|                                                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Cash flows from financing activities                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Due to related companies                                                                     |   |                       | 255,138    |   |                       |   | 16,797     |           |   |   | (238,341 | ) |
| Due to directors                                                                             |   |                       | (83,455    | )      |                       |   | -          |           |   |   | 83,455 |   |
| Due to affiliated companies                                                                  |   |                       | -          |   |                       |   | (80,500    | )              |   |   | (80,500 | ) |
|                                                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Net cash provided by financing activities                                                    |   |                       | 171,683    |   |                       |   | (63,703    | )              |   |   | (235,386 | ) |
|                                                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Effect of foreign currency translation on cash and cash equivalents                          |   |                       | 46         |   |                       |   | (162,235   | )              |   |   | (162,281 | ) |
|                                                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                         |   |                       | 12,512     |   |                       |   | 32,100     |           |   |   | 19,588 |   |
|                                                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Cash and cash equivalents, beginning of period                                               |   |                       | 28,167     |   |                       |   | 8,579      |           |   |   | (19,588 | ) |
|                                                                                         |   |                       |       |   |                       |   |       |           |   |   |   |   |
| Cash and cash equivalents, end of period                                                     |   | $                          | 40,679     |   |                       | $      | 40,679     |           |   | $ | - |   |

----

|                       |   | March 31, |   |   | March 31, |   |
|----------------------------|--------|----------------|--------|--------|----------------|--------|
|                       |   | 2009           |   |   | 2008           |   |
|                       |   |           |   |   |           |   |
| Cash paid for interest     |   | $              | -      |   |           | $      | 138 |   |
|                       |   |           |   |   |           |   |   |   |
| Cash paid for income taxes |   | $              | 170    |   |           | $      | 6,687 |   |

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|   | (i) | the audited consolidated financial statements contained in our report on Form 10-KSB for the fiscal year ended December 31, 2004 (the “2004 10-KSB”), filed with the SEC on April 15, 2005, Amendment No. 1 to the 2004 10-KSB filed on July 15, 2005, and Amendment No. 2 to the 2004 10-KSB filed on January 13, 2006 ; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the audited consolidated financial statements contained in our report on Form 10-KSB for the fiscal year ended December 31, 2005 (the “2005 10-KSB”), filed with the SEC on April 17, 2006; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the unaudited consolidated financial statements contained in our quarterly report on Form 10-QSB for the quarterly period ended March 31, 2005 (the “March 31, 2005 10-QSB”), filed with the SEC on May 24, 2005; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the unaudited consolidated financial statements contained in our quarterly report on Form 10-QSB for the quarterly period ended June 30, 2005 (the “June 30, 2005 10-QSB”), filed with the SEC on August 15, 2005; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | the unaudited consolidated financial statements contained in our quarterly report on Form 10-QSB for the quarterly period ended September 30, 2005 (the “ September 30, 2005 10-QSB”), filed with the SEC on November 15, 2005 and Amendment No. 1 to the September 30, 2005 10-QSB filed on January 13, 2006; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (vi) | the unaudited consolidated financial statements contained in our quarterly report on Form 10-QSB for the quarterly period ended March 31, 2006 (the “March 31, 2006 10-QSB”), filed with the SEC on May 15, 2006. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | insufficient knowledge and experience among our internal accounting personnel regarding the application of US GAAP and SEC requirements; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | insufficient emphasis by management on compliance with US GAAP requirements. |
|--------|-----|------------------------------------------------------------------------------|

|   | 1. | arrange for our senior management and certain accounting and finance-related personnel to attend training sessions on US GAAP and financial reporting responsibilities and SEC disclosure requirements; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | modify the mandate of our internal audit function to place greater emphasis on the adequacy of, and compliance with, procedures relating to internal controls over US GAAP financial reporting and engage an experience accountant familiar with USGAAP which is not affiliated with ,Patrizio & Zhao,LLC, to assist our accounting department and internal audit function in the preparation of our US GAAP consolidated financial statements; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3. | recruit an accounting staff member with US GAAP expertise and who is not affiliated with Patrizio & Zhao, LLC; and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------|

|   | 4. | engage an internationally recognized accounting firm, which is not affiliated with ,Patrizio & Zhao, LLC, to provide us with technical advice on US GAAP matters and SEC disclosure requirements on an ongoing basis. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                | CHINA WATER GROUP, INC. |
|---------------------|-------------------------|
|                | (Registrant)            |
|                |                    |   |
| Dated: June 9, 2011 |                    | By: /s/ Wenge Fang |
|                |                    | Wenge Fang, |
|                |                    | Chief Executive Officer |
|                |                    |   |
| Dated: June 9, 2011 |                    | By:  /s/ Ding Rencai |
|                |                    | Ding Rencai, |
|                |                    | Chief Financial Officer |

----